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- 💸 #0023 - The $3M lifestyle vs. $30M lifestyle
💸 #0023 - The $3M lifestyle vs. $30M lifestyle
Here's what really changes when you move up the wealth ladder...
Shrewd Investor
April 01, 2025 • Read in 8 minutes
The $3M lifestyle vs. $30M lifestyle
Howdy Shrewd Investors!
This week the market is selling off as in fear of the impending tariffs. You can see in the chart above one medium-term and one long-term signal cluster and the market has moved below all of them.
So in my portfolio, I’ve beta-hedged the risk from S&P 500 and Nasdaq until the market moves back up. The levels I’m watching at the moment are:
$5,660 for the S&P 500
$20,163 for the Nasdaq-100
Until the market proves it can hold those levels, I’m happily hedged.
How Wealthy Are You?
In this week’s edition, I’m breaking down the tiers of wealth that people go through on their wealth journey. This is inspired by a great question of /r/FatFIRE recently:
Unfortunately, most of the people on FatFIRE are weirdly anti-wealth even through the community is supposed to be about retiring early and wealthy, so the comments are pretty critical or virtue signal how much they don’t need without actually answering the question.
But at Shrewd Investor, we like wealth, so we’ll break down the levels in our Deep Dive below.
If you want to learn more about the different levels, when is it time to buy that second home, that classic car, or that super-yacht read on below 👇
Talk soon,
Josh
In today’s issue:
Weekly Wisdom - From Benjamin Franklin…
Market Minute - The market is going down, but for how long…
Deep Dive - What does each level of wealth get you?
First time reading? Sign up at https://shrewdinvestor.com
WISDOM
“Wealth is not his that has it, but his that enjoys it.”
DEEP DIVE
Today we're going to talk about what being rich actually means in 2025 - not just the money part, but how people live at different wealth levels.
Many people think all "rich people" live the same way. But that's not true! There are big differences between having $1 million and $30 million.
What kind of house can you buy with $3 million? What cars do people drive? Do they fly first class? How many people work for them? We'll answer all these questions.
We'll look at five different wealth levels and show you:
What people can afford
How they think about money
What their daily lives are like
What they worry about
Whether you're planning your own future or just curious about how wealthy people live, this guide will show you the real picture.
What Each Wealth Tier Really Looks Like
From Million-Dollar Comfort to Billion-Dollar Power, See How Life Changes at Each Step of the Wealth Ladder
🧱 Tier 1: Comfortably Affluent
Net Worth: $1M – $3M
Annual Spend: $80K – $150K
Safe Withdrawal Rate: ~3.5% (margin of safety for early retirees)
🧬 Lifestyle Snapshot:
🏡 Home: $600K–$1M suburban home, maybe upgraded kitchen or pool.
🚘 Cars: $40K–$75K vehicles (Tesla Model Y, BMW 5-Series, Lexus RX). No exotic cars—just luxury daily drivers.
🏖️ Vacation: 1–2 upscale vacations/year. Business class for longer trips if points cover it.
🛠️ Help: Housekeeper 1x/week, yard crew, CPA for taxes.
🎓 Kids: Starting to plan for private school or 529s.
🧠 Mental Frame: You’re secure—but still thinking like a high-earning employee. You’re "buying peace," not flexing wealth.
🧱 Tier 2: Affluent With Options
Net Worth: $3M – $10M
Annual Spend: $150K – $400K
Safe Withdrawal Rate: 3% (more conservative for longevity & optionality)
🧬 Lifestyle Snapshot:
🏡 Home: $1.5M–$3M primary home in affluent zip code.
🏠 Vacation Home: $750K–$1.5M second home (ski, beach, or near family).
🚘 Cars: $80K–$150K range. Porsche 911, Range Rover, Tesla Model S. You drive what you want.
✈️ Travel: Fly business class by default. First-class when it makes sense. Premium resorts.
🧑🍳 Services: Weekly chef-prepped meals, personal trainer, estate lawyer, financial advisor, bookkeeper.
👨👩👧 Family: Kids in private school. College fully funded. Family vacations upgraded.
🧠 Mental Frame: Your money works for you now. You’re optimizing for time, health, and freedom from friction.
🧱 Tier 3: Generational Wealth
Net Worth: $10M – $30M
Annual Spend: $400K – $1M
Safe Withdrawal Rate: 2.5% – 3% (because taxes, inflation, and complexity scale)
🧬 Lifestyle Snapshot:
🏡 Home: $3M–$6M primary estate; possibly architect-designed.
🏠 Vacation Home(s): $1M–$3M each; you might own multiple or rotate through fractional luxury properties.
🚘 Cars: A garage of toys. $150K–$300K+ cars: Ferrari, G-Wagon, Maybach.
✈️ Travel: Fractional jet ownership (NetJets, Wheels Up), full-time travel concierge.
🧑💼 Team: Personal CFO, CPA, estate attorney, house manager, nannies, chef, driver.
💼 Investing: Access to private deals, real estate syndications, direct equity placements, and multi-manager hedge funds.
🛡️ Structure: Dynasty trust, Wyoming LLCs, charitable foundations, multi-state asset protection.
🧠 Mental Frame: You’re not just rich—you’re institutional. Everything is structured for protection, leverage, and legacy.
🧱 Tier 4: Centimillionaire Circle
Net Worth: $30M – $100M
Annual Spend: $1M – $3M
Safe Withdrawal Rate: 2% or lower (due to vast complexity and bespoke needs)
🧬 Lifestyle Snapshot:
🏡 Home: $5M–$20M trophy properties across the country or globe.
🏠 Vacation Homes: 3–5 luxury properties; possibly staff on site full-time.
🚘 Cars: Custom collection. McLaren, Rolls Royce, vintage collectibles.
🚁 Travel: Own or co-own jet. Helicopter for quick hops. No security line in sight.
👩💼 Staff: Full-time personal staff: assistants, security, chefs, tutors, house manager.
🧠 Operations: Family office with CIO, accountants, and legal team running operations like a business.
💼 Access: Political donations, lobbyist meetings, sports team investments, naming rights.
🧠 Mental Frame: Money is a tool for shaping the world. Privacy, power, and continuity are the new currency.
🧱 Tier 5: Billionaire Class
Net Worth: $100M+
Annual Spend: Unlimited
Safe Withdrawal Rate: Doesn’t apply. You’re playing an entirely different game.
🧬 Lifestyle Snapshot:
🏛️ Real Estate: Multiple $10M+ homes worldwide. Think: penthouse in NYC, villa in Tuscany, compound in Jackson Hole.
🚤 Toys: Mega-yacht ($50M+), jet fleet, private island.
📉 Holdings: Own controlling interests in companies, maybe your own holding company or publicly traded entity.
📣 Influence: Presidential campaign bundler, endow chairs at Ivy Leagues, co-own a sports franchise.
🌎 Access: World Economic Forum, Bilderberg, Davos.
🧠 Mental Frame: Wealth is no longer about “having.” It’s about legacy, leverage, and living forever through institutions.
So What Does This Mean For You?
I hope this breakdown helps you see wealth in a new way. It's not just about bigger numbers - it's about how your life changes at each level.
The most interesting part to me is how people's mindset shifts. At lower wealth levels, you're still thinking about what you can buy. At higher levels, you're thinking about what you can build and leave behind.
No matter where you are on your money journey, it helps to know what's ahead. This way, you can set better goals and understand what really matters to you.
What tier are you aiming for? Is it about having nice things, or is it about having more freedom and less stress? There's no wrong answer - it's just good to know what you're working toward!
Next week, we'll talk about some simple ways to move up these tiers, no matter where you're starting from.
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The content provided in this newsletter is for informational purposes only and should not be considered as specific advice for any specific individual. The information is prepared by knowledgeable individuals and is not written by certified tax professionals or investment advisors. For personalized advice tailored to your unique financial situation, consult with a qualified tax professional, financial advisor, or attorney.
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